London stocks are expected to open sharply lower on Monday after fresh tensions between the US and Iran rattled global markets and pushed oil prices higher.
Futures data suggest the FTSE 100 will open 116.8 points lower, down 1.2% at 9,801.53, following a 1.4% decline on Friday.
The sell-off comes after Donald Trump issued a 48-hour ultimatum demanding Iran reopen the Strait of Hormuz, warning that US forces would “obliterate” Iranian power plants if it failed to comply.
Iran responded by threatening to fully close the strait and target key infrastructure across the region if its own energy facilities are attacked, raising fears of a major disruption to global oil supplies.
Oil prices climbed in response, with Brent crude rising to $113.47 a barrel amid concerns over supply shortages.
The broader market backdrop remains fragile. On Friday, the Dow Jones Industrial Average fell 1.0%, the S&P 500 dropped 1.5%, and the Nasdaq Composite slid 2.0%.
Asian stocks fell sharply as rising geopolitical tensions rattled investor confidence. Japan’s Nikkei 225 dropped 3.5% to 51,511.75, while Taiwan’s Taiex fell 2.5% to 32,722.50. Australia’s S&P/ASX 200 slipped 0.7% to 8,365.90.
Losses were even steeper elsewhere, with South Korea’s Kospi plunging 6.5% to 5,404.77. Hong Kong’s Hang Seng declined 4.1% to 24,250.44, and China’s Shanghai Composite fell 3.8% to 3,806.29.
Analysts warn that the risk of a broader energy crisis is rising, with potential disruption to oil flows threatening to push prices higher and weigh further on global growth.
